The market started soft this week, as we predicted; however, the results of a few big reports this week could change things quickly.
Investors should prepare for the Consumer Price Index coming out on Wednesday and the Producer Price Index on Thursday. We’re expecting to see declines in inflation – but any prediction otherwise from economists may affect market performance.
This week in our Learning Markets livestream, we examined the role that oil has in an inflation decline. It’s down from $124 a barrel earlier this year to $90 a barrel this week, but the question is whether the decrease is good for lowering inflation or if it indicates a further lag in the economy.
We also discuss how investors should play the oil price decrease, whether that means adding risk in the form of short positions or staying bearish, as we have, on the industry.
What Do You Meme?
We’re also talking about meme stocks – no, not as a way to bolster your portfolio. AMC Entertainment Holdings Inc. (AMC), Bed Bath and Beyond Inc. (BBBY), and others are seeing big gains, but we are watching them as a way to identify the next drop in stock prices.
Sometimes meme stock trends can be considered the proverbial canary in the coal mine for the rest of the market. If we see a big selloff in this corner of the market, then be on the lookout for the bullish trends we’ve enjoyed to slow down.
Viewer Questions and Feedback
We answered some specific viewer questions this week and would be happy to address yours in a future broadcast. Just drop a line in the comments section or email us at email@example.com.
Here are just a few we discussed:
- What are your thoughts on NVDIA going back to $180 this week after today’s lowered guidance, and what are your thoughts on the CPI rallying markets on Wednesday? – Russ R.
- Would you take a look at AMZN after its earnings report and over the past month? Why has it been lagging so much? – Greg B.
- Could you give a price target for DHT, and do you believe the very large carrier tanker market is taking off? – Christa S.
- Why are refiners such as VLO not receding as quickly with crude oil prices falling? – Yash A.
And check out our shorts for quick updates on the stories moving the market. Here’s what we’ve covered this week so far:
- The Lies in the Unemployment Report
- Is Paypal’s Earnings Report Good for Fintech?
- Moderna Gets Earnings Booster
- Jobs Data Could Doom Market Rally
If you have any questions yourself about options trading, specific stocks or bonds, or market trends in general, we’re happy to answer them. Just email firstname.lastname@example.org or drop us a line in the video comments.